What is you biggest challenge regarding stops?

[FibMaster]

I'm planning my new seminar called "Practical stop-loss planning for profits and survival."

http://www.fibmarkets.com/pro_seminars/index.html

You can help by posting responses to the following questions;

1) What is your most-used stop strategy?

2) Are you happy with your strategy?

3) What is your biggest challenge regarding stops?

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Thanks for your feedback!
-Neal (FibMaster)

[plasma]

OK, I'll post to get things started;

1) What is your most-used stop strategy?
I figure out how much I want to risk and put a stop-loss there.

2) Are you happy with your strategy?
Not really, my stops get hit too often.

3) What is your biggest challenge regarding stops?
Finding a stop that is not too close, but still gives a decent risk/reward ratio.

[toyogo00]

Hi,

1) What is your most-used stop strategy?
a. based on Fiblevel and swing high/low of the trading time frame for initial SL.
b. based on price action and TRSI cross up/down of the trading time frame to re-adjust the SL along the trade.

2) Are you happy with your strategy?
the basic methodology is firmed but need a lot of fine tuning on SL adjustment along the trade. Big improvement is needed to overcome the woulda, shoulda, coulda problems...

3) What is your biggest challenge regarding stops?
Psychological issue especially when the last trade was stopped out, the next trade tends to be too conservative and miss the good opportunity.


Regards,
Toyogo

[Graham_S]

Hello,

This is Graham, ex blink. Got fed up of flipping between the two on the forum/chat/seminars etc.

Bear in mind with this answer that I'm not the most successful trader in the world:-)

1) What is your most-used stop strategy?
Using the concept of a disaster stop as a catch all in case of the unexpected. Normally hidden behind sk or fibs taking into account round nos, or other obvious levels.
My actual stop out should <cough> be on a trsi/stoch cross as a guide, also taking into account price action and levels. eg if the trsi is at say 60 slightly up or flattish and it flips over a bit, but the price isn't closing below a good trendline or supp level and we are getting hh's, hl's or flat on top of a 00 number, then a cross plus say a trsi close below the line or 00 number would be the 'dynamic stop'. Sometimes it's obvious that you don't want to be in a trade if a price level is violated.
If price moves in the right direction, the stop will move up, but behind fibs and obvious levels etc.

2) Are you happy with your strategy?
The above needs constant monitoring - ok on say 15 mins and below, but not a strat for leaving the pc overnite. Also takes a lot of discipline to close out the trade as opposed to it being closed out automatically. The disaster stop often doesn't give a half decent risk reward ratio, (well, mine don't seem to) hence the need for absolute disipline to close out. So, sort of happy with the concept, but not with it's execution method (eg - me).
I've thought about putting in a 2nd hard, but dynamic stop once the trade is under way, below, say 'where you wouldn't want to be in' the trade to take the emotion out of pressing the button, but don't like that idea cos of the quick spike. The EuCad is a case in point - loves to spike just for a few seconds thru support, especially at 00 levels once you think it's left them behind.

3) What is your biggest challenge regarding stops?
As mentioned above in 2. Me on the button at a sensible level rather than the disaster stop.
I ask myself, if I need to put in a disaster stop so far away from the entry price, am i getting into the trade at the correct price level or should i be in it at all. Should i be able to refine the entry so the stop isn't so far away? Am i taking on a riskier rather than a more certain trade? Should i be awaiting a more probable trade? How do i refine the entry?
Also, one of my probs is sticking to the same time frame. A few trades i've entered on the 5 min and tried to manage on the 15 trsi, say. This seems to be ok once price has moved in your direction a good amount, but not too clever in early stages. A 5 min sk area that's provided the entry may not even register on a 15 min and a lower one on 5 min that provides the disaster stop may provide the entry on the 15, so there's no hope of managing it on the 15. Sounds obvious - well it is now:-)
Another prob is having the faith (the guts to wait) in the disaster stop to bounce price back in the right direction so you can get out with a smaller loss or profit.

Lastly, should the disaster stop be within absolute limits of the say 1-2 percentage account risk on that trade, or would that be where you expect to get out (such as moving below a 00 level rather than sitting on it if long) if the trade goes against you?

Cheers.

Graham

[paddycal]

Hi Neal

1) What is your most-used stop strategy?

Try to put stops beyond suitable fib levels. however depending on what timeframe i am trading this may not be possible, as on higher timeframes, the stop may be further away and beyond my risk level.
then the stop placement may be beyond previous high/low , and then this makes them prone to stop chasing ..... ( not that they would be after my stops in particular .... lets just say i'm only trading minis here , :) )

2) Are you happy with your strategy?

No , defiitely need to refine the strategy. possibly maybe drop a timeframe or 2 and place a stop at a lower timeframe.

3) What is your biggest challenge regarding stops?

Having confidence in my system to trade it properly. in fact i don't really have a proper system in place yet, but will change that. biggest issue is to trust my stop placement and accept that stops will be hit sometimes. it's the nature of the game. even though i know not all trades are winners, and it's a numbers game, gaining confidence in your stops ( knowing that they are placed in right location... )

Looking forward to the workshop .....

Thanks

Patrick

[bht]

1) What is your most-used stop strategy?

Placing initial stop behind most recent obvious "higher high"/"lower low" point and/or FibLevel after a TRSI rollover trigger

2) Are you happy with your strategy?

Not sure what else to do really - if the trade goes in my direction after the trigger, it's fine - otherwise I feel suspectible to getting "wash and rinsed" before the move continues in my direction. I want to avoid using wider stops if possible.

3) What is your biggest challenge regarding stops?

Knowing when I can safely move my stop to break-even after the trade moves in my direction.